Buying a Home in Ramat Gan Requires Over NIS 40,000 Monthly Net Income

Purchasing a four-room apartment in Ramat Gan, a city bordering Tel Aviv, now demands a net monthly household income of NIS 37,000 to NIS 44,000, according to recent real estate analyses. A good quality four-room apartment in the city is priced between NIS 3.3 million and NIS 3.9 million, with prices nearing NIS 4 million in the city center and sought-after neighborhoods. A three-room apartment averages around NIS 2.7 million.

These prices translate to a monthly mortgage repayment of NIS 13,100 to NIS 15,500, assuming a 30% down payment and a 25-year loan with current interest rates. Banks typically cap mortgage payments at 40% of net income, meaning a household would need to earn NIS 33,000 to NIS 39,000 net monthly. However, for a more comfortable ratio closer to 30-35% of income, the required net earnings rise to NIS 37,000-NIS 44,000, and potentially up to NIS 44,000-NIS 52,000 for a 30% repayment ratio.

An income of NIS 20,000 net per month is insufficient for a good four-room apartment in Ramat Gan. This income level, at a 40% repayment ratio, can only support a mortgage of approximately NIS 1.4 million, allowing for a property worth around NIS 2 million with a 30% down payment. Smaller, older three-room apartments (70-75 sqm) in buildings without elevators have been sold for NIS 1.85 million to NIS 2 million during the summer.

The required down payment for a NIS 3.3 million to NIS 3.9 million apartment is between NIS 990,000 and NIS 1.17 million. For first-time buyers, banks allow up to 75% financing, reducing the immediate down payment to NIS 825,000-NIS 975,000, but this increases the monthly repayment. Additional costs like legal fees, agent commissions, and potentially purchase tax must also be factored in.

While the average price of an apartment in Ramat Gan saw a slight decrease of 0.8% in the first half of 2026 compared to a national average increase of 3.9%, prices remain high, driven by urban renewal projects. These projects involve replacing older buildings with high-rise towers, offering future potential for apartment owners in areas slated for redevelopment. Ramat Gan's property prices are closer to Tel Aviv's than to those of nearby Petah Tikva.